Cryptocurrency has remained a formidable asset for several individuals protecting and securing fiat currencies. This serves as a hedge to preserve your funds, significantly when situations could deflate a country’s fiat currency.
The recent turbulence in Russia from the Ukraine invasion has pushed most people to throw their money into cryptocurrency. As a result, the trading volumes between Bitcoin and the Russian ruble have risen to nine-month highs. Unfortunately, this has caused a substantial downward fall in the country’s currency.
A crypto research firm based in Paris, Kaiko, provided tracking data showing the high surge of ruble-denominated Bitcoin volume. Thursday’s report indicated up to 1.5 billion RUB for the volume, which is the highest since May 2021.
According to Clara Medalie, an analyst at Kaiko, the majority of the activities for the surge took place on Binance.
Similarly, there’s a spike in Bitcoin-Ukraine hryvnia trading volume though it’s’ not equivalent to the high volumes recorded in October 2021. The BTC-UAH main trades concentrated only on two crypto exchanges, LocalBitcoin and Binance.
Reasons For Rise In Bitcoin Crypto Trading Volumes
Medalie also added similar observations for both tether-hryvnia and tether-ruble trading volumes. From Kaiko data on Thursday, the trading volume for USDT/RUB has surged to about 1.3 billion, which shows an 8-month high.
This recent rise in the trading volume of ruble-based digital assets occurs from the investors” rush to wade out from the rubble. They are afraid that the West might place sticker sanctions on the country that could affect the value of RUB.
Tether, the largest global stablecoin by market cap, is notable for providing price stability even among the volatile attributes of cryptocurrencies. The digital asset strives to maintain a stable peg of 1:1 with the U.S. dollar.
From its last week’s 8% dip on 90 per USD, the Russian fiat currency, RUB, further moved down by an additional 28% at the early hours of today. The value Bloomberg recorded stands at 118 per USD. Other beneficiaries of Russian investors’ safety flight include U.S. treasuries, gold, USD, and Swiss franc.
Disciplinary measures from the United States and some allies were meted against Russia last weekend. The move, which was progressive, was to restrict the accessibility of Russian banks on the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which is the communication bank for foundational financial transactions globally.
Moreover, the European Union has banned the Russian central bank on all transactions, inhibiting its functionality from selling international assets that could support its banks.
Current reports revealed that the Russian central bank had informed brokers about banning non-resident investors from selling securities. Also, by the early hours of Monday, Russian President Vladimir Putin mandated increased alertness from the national nuclear deterrence force.
Featured image from Pixabay, chart from Kaiko and TradingView.com